Case study

Kenya: Promoting resilience and food security through Risk-Contingent credit in Africa

Over the last couple of decades, Kenya has experienced an increase in famine frequency, rising from one famine between the 1960s and 1980s, to a famine almost every year since the mid-2000s. This is due the current state of climate emergency with impacts such as a sustained decline in precipitation levels, increase in intensity of storms, and the expansion of arid and semi-arid lands, all of which have contributed to a drop in rain-fed agriculture potential in the country. In light of this, the International Food Policy Research Institute (IFPRI) has joined forces with partner organizations to launch a pilot programme for a Risk-Contingent Credit (RCC) solution in order to address the exponential rise in climate risks and support resilience building within smallholder farmers in Kenya. RCC is a linked financial product that embeds insurance protection through loan coverage and the reduction of collateral during droughts.

Topic / Theme:

Agriculture

Solutions / Instruments:

Microinsurance Businesses

Region:

Sub-Saharan Africa

Year:

2022

Author:

L. You, and A. Shee

Pages:

2

Language:

English

Organization:

International Food Policy Research Institute (IFPRI), Natural Resources Institute (NRI), University of Greenwich